The Australian dollar dropped as much as 1% to $0.621 on Tuesday, reversing gains from the previous session after US President Donald Trump indicated that he was considering imposing a 25% tariff on Canada and Mexico as early as February 1. He then mentioned China in his comments, but provided no specifics. The prospect of additional U.S. tariffs is expected to have a ripple effect on China’s export-driven economy, which could, in turn, negatively impact major trading partners like Australia. Domestically, traders are keeping a close eye on next week’s quarterly inflation report, which may provide crucial insights into the future direction of local interest rates. Speculation is mounting that the Reserve Bank of Australia could begin cutting rates as soon as next month.
You are viewing a single comment's thread from: